Civil Commotion is:
- a violent and mostly dangerous situation in which many people in a public place cause serious damage that basic insurance agreements do not usually pay for. What is more, there is a lot off. Civil commotions sometimes involve setting fire to buildings like schools, hospitals or houses, breaking windows, looting, turning over cars or defacing property. Standard homeowners' policies and property insurance policies typically cover losses caused by civil commotion and riots.
- "is essentially a kind of domestic disturbance, referring to disorders such as occur among citizens or within the limits of one community"(Rasen P. Sweeney J. Gillick J. 2017, p.1245).
- "What is this but a civil commotion? No definition has been attempted to be given what it is. It is said, that this is a civil commotion, listened from usurped power and rebellion. It is admitted that this kind of insurance may amount to high treason, and, to be sure, it may, But the office do not put their expectation upon trying whether they were guilty of high treason or not"(Hammond E. 2009, p.74).
Scope of the problem
Damage to property resulting from riots and civil disorders across the country has reached huge and giant proportions and may increase in magnitude in the near future. As a consequence, owners of property may find it difficult to obtain riot and civil commotion insurance at a price that they can afford to pay. For example, reinsurance for riot and civil commotion losses may be available to primary insurers from reinsurers only at much higher costs which would ultimately have to be passed on to the insurance-buying public.
One of the consequences of such an insurance market development would be critical to the national economy. It would be dangerous to the availability of credit, discourage private investments and deter national economic growth(Hughes R.J. 1968,p.162).
Riot and Civil Commotion Insurance
Riot relates to at least three people meet for a cause who express their message through disruptive, aggressive and often violent means. Civil commotion relates to the same conduct made by a larger group of vandals. When either causes damage to property, a homeowners or property insurance policy might cover the policyholder for the loss.
In addition to physical damage, the policy might also cover business breaks. The owner of a broken commercial property whose operations have been suspended because of a civil commotion or a riot might be able to file a claim for lost earnings. A store owner, for example, can claim that they were forced to lock up their store and, therefore, lost clients on account of a riot or civil commotion.
- Hammond E.(2009), A Treatise on the Law of Fire Insurance and Insurance on Inland Waters: In Two Parts. with an Append, BiblioLife,
- Hodges S.(2007), Law of Marine Insurance, Oxford University Press,
- Hughes R.J.(1968), The President's National Advisory Panel on Insurance in Riot-Affected Areas, Chairman,
- Keeley M.(2013), Annotated Financial Institution Bond, ABA,
- Rasen P. Sweeney J. Gillick J.(2007), Aviation Law: Cases, Laws and Related Sources: Second Edition, Martinus Nijhoff.
Author: Monika Broszkiewicz